Financial markets do not typically move in concert with one another. In addition, no one can reliably predict how a particular asset class will perform in any given year. One asset class may be leading the market while others lag and it may be completely different the next year.
While historic returns do not predict future performance, the table below shows relative performance of some of the more popular asset classes in Canada over the past 10 years. As you can see, there were years when equities led market returns and years when fixed income led the market. There were also periods when a market leader from one year underperformed all of the other asset classes the following year, and times when the lowest performer from one year went on to lead the market the next year.
Source: NovelInvestor.com
No comments:
Post a Comment